Replies to post #26 on McMoRan Exploration Co. (MMR)

[was pennytrader]

I agree completely. I'll be back in for sure, just had a feeling once that PR came out it was gonna drop a bit. Maybe 14 or 15? Will keep watching for a bargain price.

[OilStockReport]

Looking bullish for next quarter. Anybody buying here?

HIGHLIGHTS

Completed agreements to acquire Plains Exploration & Production Company’s (NYSE: PXP) shallow water Gulf of Mexico (GOM) shelf assets and to issue $900 million in new equity-linked securities to fund future capital expenditures associated with McMoRan’s expanded asset base. Closing of the acquisition and financings is expected by year-end 2010.

Exploration & Development Activities:

Completion and flow test of the Davy Jones #1 discovery well expected to commence in the third quarter of 2011.
Davy Jones offset appraisal well commenced drilling on April 7, 2010 and is currently drilling below 19,900 feet towards a proposed total depth of 29,950 feet.

Blackbeard East ultra-deep exploratory well commenced drilling on March 8, 2010 and is currently drilling below 26,000 feet towards a proposed total depth of 29,950 feet. Analysis of the information obtained to date indicates hydrocarbons in quality reservoir rocks with good porosity and permeability in the Upper and Middle Miocene below the salt weld.

Lafitte ultra-deep exploratory well commenced drilling on October 3, 2010 and is currently drilling below 3,300 feet towards a proposed total depth of 29,950 feet.

Wireline logs at Blueberry Hill indicated that the deep gas well encountered 105 net feet of hydrocarbon bearing sands with exceptional porosity in the Miocene. Completion activities are under way with first production expected in the first quarter of 2011.

Near-term drilling includes three additional exploratory wells at the Boudin, Hurricane Deep and Platte prospects.

Third-quarter 2010 production averaged 146 Million cubic feet of natural gas equivalents per day (MMcfe/d) net to McMoRan, compared with 215 MMcfe/d in the third quarter of 2009. Average daily production for 2010 is expected to approximate 160 MMcfe/d net to McMoRan, including 140 MMcfe/d in the fourth quarter of 2010.

Operating cash flows totaled $28.2 million for the third quarter of 2010 and $119.7 million for the nine months ended September 30, 2010.

Capital expenditures totaled $58.8 million in the third quarter of 2010 and $160.3 million for the nine months ended September 30, 2010. McMoRan expects capital expenditures to approximate $220 million for the year.

Cash at September 30, 2010 totaled $180.2 million.

McMoRan Exploration Co. (NYSE: MMR) today reported a net loss applicable to common stock of $25.3 million, $0.26 per share, for the third quarter of 2010 compared with a net loss of $51.9 million, $0.60 per share, for the third quarter of 2009.